The Kremlin is not considering ways to cut the Russian internet off from the global internet, according to Dmitry Peskov, President Putin’s press secretary, as quoted by Interfax. The denial follows a Friday report in the business newspaper Vedomosti.

Peskov said, however, that Russia was considering “how to ensure its national security” given the poor relations between the country and the West.

“Of course, there can be no question that Russia can be disconnected from the global Internet, that she is preparing for it or considering the possibility,” he said (via Google Translate and a Russian-speaking contact of mine), adding: “We know who is the administrator of the global internet. And due to this unpredictability, we have to think about how to ensure Russia’s national security.”

Vedomosti claimed that on Monday the country’s security council and President Vladimir Putin will discuss emergency powers to cut out the rest of the world, perhaps by disabling non-Russian IP addresses. Under this plan, Russian ISPs would need to install equipment to allow this to be done in “emergencies”, such as during war or heavy protests.

The journal said it had learned of the plans through telcos, ISPs and non-profit organizations, who said the security meeting will also evaluate the results of a recent test of the Russian internet’s stability.The Russian communications ministry said it knew nothing of the scheme.

A recent law forces web services to store Russians’ personal data within the country — not only does this make it easier for Russian spies to access this data, as it is supposed to be stored in Russian data centers using locally formulated, government-approved algorithms, but it could also be a mechanism to make the separation of the Russian internet more tenable.

The rumor is probably enough to send shivers down the spines of Russian developers and providers of business services. Even the rumor, with any plausibility, will cause many to reconsider outsourcing to the country.

Most of Russian rural and smaller city population ether do not have access to Internet or use domestic resources due to language barrier. These resources already under control of secret services and most of URL that Kremlin deems “dangerous” are already being blocked. I see it more as a declarative games as Kremlin would come up with anything to derail attention from Ukrainian crisis.